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Renewable energy is beating the iron ore trade

The company’s former chief executive Elizabeth Gaines said in Davos that renewables are likely to eventually outpace Fortescue Metals’ iron ore business, despite strong tailwinds for the commodity ahead.

Gaines, Non-Executive Director and Global Green Ambassador at Fortescue, said on the sidelines of the annual meeting of the World Economic Forum in Davos that Fortescue would continue to grow its iron ore business, but the scale of the global green energy transition would boost demand for renewables much more. .

The scale of the transition to green energy
There is no shortage of ambition for growth in our iron ore business, but when you look at the scale of the transition to green energy, it is not unreasonable to think that eventually renewable energy is likely to significantly outpace our iron ore business.”

She added, “I think we will see renewables play a very large role in our bottom line in the future.”

Last year, the Perth-based miner said it would spend $6.2 billion to eliminate fossil fuel use and achieve “real Earth zero emissions” across its iron ore operations by the end of the decade.

environmental and social governance
“There is a view that companies are only doing this for ESG reasons, but it’s also smart to do it, because the economy just stacks up,” Gaines said.

The world’s fourth-largest iron ore producer has several projects lined up, as it looks to rapidly develop technology to produce green hydrogen, transitioning from a pure iron ore producer to a green energy company.

Gaines said the mining company’s Australian renewable energy projects were “very close” to a final investment decision, adding that one of the local projects would likely be the first to receive board approval.



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